2nd GDT auction prices in May 2025: -0.9%
The second Global Dairy Trade (GDT) auction in May 2025 saw the high price increase of the previous auction fall again slightly by -0.9% on average. With the exception of clarified butter, all average results fell. The high price level to date leaves little room for upward movement. This applies in particular to milk fats. Auction volumes continue to fall due to seasonal factors and are considerably below the multi-year average.
At -1.0%,whole milk powder (VMP) (approx. 50% auction share) has somewhat reduced the high price increase of the previous auction. Despite tight supply volumes, a price ceiling appears to have been reached. The main buyer, China, has held back with sufficient stocks. The VMP price level falls back to 3,846 €/t.
Skimmed milk powder (SMP) (approx. 25% share) was unable to maintain the high price premiums in the pre-auctions and corrected the price trend slightly downwards again at -0.7%. At the equivalent of 2,501 €/t, absolute SMP prices remain in the good mid-range of previous months. The Chicago quotes are at €2,351/t and the EEX prices in Leipzig are at €2,388/t.
Prices for pure butterfat (approx. 10% share)have risen again by an average of +0.9%. Surcharges were achieved in most delivery months. The month of November saw a return to the previous level of 5.8%. Compared to the high normal butter price, a further adjustment was required.
Normal butter (approx. 8% share) was no longer able to maintain the peak prices achieved with an average of -1.5%. However, at €6,944/t, the level remains well above average compared to the long-term results of the GDT auctions. EEX Leipzig is quoted at €7,238/t and the Chicago prices are around €4,674/t for the May 25 date due to the dollar exchange rate.
Change in milk supply in major production regions of the world
After the brief decline in milk deliveries in the first two months of 2025, the trend is moving upwards again in March 2025. The USA is growing again. The decline has slowed in the EU. The increases in the other smaller production regions are resounding.
